Key Information

We continue with some of the key information you should be watching for and gathering in order to negotiate from a position of power.

Personal Information

What kind of woman will be sitting across the negotiating table from you? Is she family oriented, totally profit-driven, easily offended, or entirely unemotional? How does she run her business? What are her hobbies? What other organizations is she a part of?

Why personal information? Because almost all information can be used in negotiating. First, and most obviously, it can be used to establish rapport. Ask about the family, if that is important to her. Talk about the bottom line if she is profit-driven. Mention you just played golf that morning, if she is a golfer. Bring her a gift of her favorite author's newest book.

In addition to building rapport, such information can be used in the actual negotiations too. If she's a banker, and you're trying to arrange financing for a real estate development, use what you know about her. Say "I was impressed with what you did for that Habitat For Humanity project. I was hoping you could work that creatively on this loan too." She'll be impressed that you know of her charity work, and more likely to listen to what you are suggesting.

Throughout the negotiations you can learn more about the other person, and use what you learn. If he loves to fish, you could slip in "I think if we settle these few points, we can wrap this up. Then we can both be out fishing this weekend instead of at this table." The thought of getting out fishing might just motivate him to concede a few points.

Competition

The first thing you have to establish is who the competition is. Even if it isn't obvious, there is competition. If you are the only supplier of aluminum brake assemblies for bicycles, they still can decide to buy steel ones. Identify all current and potential competition, and gather the key information about it.

You want to know what the competition is offering. In the example above, you would want to know what steel brake assemblies sold for, and how they compare to aluminum. You also would find out how reliable those suppliers are, what problems others have had with them, and so on.

Armed with this information, you are ready. When the bicycle maker says "We've also been considering steel assemblies," you have the information you need. You tell him "I can understand why you might, but let me show you something."

Then you pull out a wholesale price list for steel assemblies, and point out," As you can see, they are slightly less than ours, but then you pay more for freight because of the weight. In the end they are almost the same price, and customers prefer the aluminum in any case." You might even have done an informal survey to back up that last statement. If you information is accurate, it's hard for the bicycle maker to even consider the steel assemblies again.

That was an example of how you can use information about your competition to defend yourself in negotiations. Later, you'll see how to use the competition more effectively from the other side (As the bike maker, in this case).

Key Players

You need to know who has what decision making power when negotiating. A common tactic is to say "I'll have to run that by the president of the company." (Or whoever.) If you know that's true, you should probably be negotiating with the president. If it is a ploy being used against you, and you know it, you can counter with "Maybe I should be talking to him instead of you then?"

In this example, you'll just offend the other player if he truly has no authority. You don't want to offend him, because he may have influence. If, on the other hand, you know he can make the decision himself, the reference to talking to his boss, can make him "prove" to you that he is the one to talk to. To do that, of course means he has to make the decision now.

The point here is that you need to know who does what. Some people involved have all the decision making authority. Others may have limited authority, while still others have no authority, but perhaps a lot of influence. You have to identify the key players and their roles.

You wouldn't want to argue or negotiate with an accountant, for example, if he is only there in a consulting role. Be friendly with him instead, and if you get him alone, let him understand how your proposal will benefit his company and him. No authority does not mean no influence, and what he tells the ones who make the decision can help you or hurt you.

The idea is to get as many as you can of those with influence on your side - at least to the point where they can say "He seems like a decent guy." Then get those with limited authority to prove their authority by way of decisions beneficial to you. Then you are ready to face the big issues with whoever the real decision makers are. But you have to gather the key information on who's who first.

Continues here... Negotiation - Power - Some of the many sources...